July 5th, 2016

IEF Capital fully repaid the € 1 billion CMBS loan ahead of its maturity date on behalf of the IEF Capital Berlage fund. The remaining portion of the CMBS loan of € 480 million was repaid by taking out two new loans. IEF Capital has closed a € 415 million loan with ING and BerlinHyp and another loan of approximately € 65 million with Syntrus Achmea Real Estate & Finance. As such, IEF Capital Berlage has successfully completed the refinancing strategy initiated in 2014 to refinance the original € 1 billion CMBS loan in phases and in different tranches. IEF Capital is a joint venture between Bouwfonds Investment Management and IEF (Inflation Exchange Fund).

At the end of June, IEF Capital refinanced the last half of the high quality A1 retail portfolio owned by the IEF Capital Berlage fund. As such the 1st mortgage CMBS loan concluded in 2006, maturing at the end of 2016, was redeemed well ahead of its maturity date. With this step, the fund also fulfilled its strategy of creating a spread within its loan portfolio by financing the property portfolio in parts with multiple parties. In total, the fund currently has five separate ongoing financing arrangements with lending consortia consisting of Dutch as well as foreign banks and other institutional parties.

The fund took out a € 415 million loan with ING and BerlinHyp. ING financed € 295 million, of which part will be syndicated, and BerlinHyp € 120 million. The portfolio contains several iconic properties, including De Bijenkorf department stores in Amsterdam and Rotterdam. It also includes other retail properties at prime A1 locations in the historical centres of major cities. The financed portfolio furthermore contains two buildings, which were previously leased by V&D, in the cities of Groningen and Nijmegen. Both properties have since been virtually completely leased and will be thoroughly renovated over the next six months.

ING REF: Peter Brandsma, Director Corporate Clients ING REF: ’We are very proud that with this significant underwriting, ING once again played a leading role in refinancing one of the best retail portfolios in the Netherlands. The refinancing further solidifies the long-term relationship between ING and IEF Capital. Despite the turbulence on the Dutch retail market, the portfolio proved to be extremely robust. We are fully confident that due to its active management IEF Capital will continue to further optimise the portfolio.’

BerlinHyp: Rogier Bos: ‘We believe in the attractiveness of the high streets of Dutch city centres. IEF and Bouwfonds Investment Management have proven themselves capable of tackling today’s challenges in the retail market. We are therefore very happy to support the IEF Berlage fund with its refinancing.’

IEF CAPITAL: Nechemja de Bruijn: ‘ING and BerlinHyp have been our valued partners and the financiers of our beautiful retail fund for many years. We are therefore delighted that we were able to close another transaction with these two parties. We chose for ING and BerlinHyp because in addition to their competitive market rates they also express confidence in our portfolio, our organisation and business plans. To us, their confidence is of crucial importance in the long-term relationship that we are continuing for many years by closing this financing arrangement. This attractive financing, the largest in the fund, translates into a further continuation of our relationship and provides us with the opportunity to optimally execute our activities in this property portfolio.

At the same time, at the end of June, IEF Capital Berlage has closed a loan of approximately € 65 million with Syntrus Achmea RE&F. The financed properties are the HEMA and the former V&D building in the centre of The Hague, along the Grote Marktstraat. The redevelopment of the former V&D building was started in April 2016, well before the refinancing, and is expected to be finished before the end of the year. At the beginning of 2017, the complex will accommodate 5 retail units. During the following period, the former office floors will be transformed to serve a new purpose. Details concerning the lease of this complex will be announced in the near future.

The magnitude of this financing and the quality of the buildings provided the right ingredients to negotiate a bilateral financing arrangement with Syntrus Achmea RE&F. For IEF Capital Berlage this was the final step in the fund’s refinancing.